Zář 26

Bitcoin Price Analysis: BTC Dumps To $8k As Market Trembles

After much anticipation of an explosive move, Bitcoin has finally chosen a direction for the short-term dumping through the asymmetrical triangle support. Current market price rests on $8,100 support but looks poised to drop further.

Bitcoin 1-Hour Price Analysis

bitcoin chart

On the 1 hour chart for XBT/USD, we can see the recent break-down that has taken place. This movement resulted in price levels crashing through the larger asymmetrical triangle support clearly visible on the daily chart below. The current market price finds brief rest-bite as price levels find support at $8,100.

There doesn’t appear to be adequate buying pressure entering the market at $8,100 leading me to believe that Bitcoin will drop further to my predicted target of $7,200 as stated in my previous analysis on Bitcoin here.

POC (Point of Control) sits just above the current market price on the 1 hour indicating price action is going through a brief period of short-term consolidation. This will essentially result in price action trading sideways for a few days, and selling pressure gradually building up again ahead of another dump over the coming days. Key support lies between $7,400 and $7,150, and will likely be an area in which Bitcoin bounces and re-gains momentum to the upside.

1-Day Price Analysis

bitcoin chart trading

On the 1 day chart for XBT/USD, we can see the break-down through the asymmetrical triangle clearly. The breakdown took place at $9,400 and was fuelled by a large red volume candle. Current market price rests on a strong support line, however there doesn’t appear to be enough buying pressure as the most recent daily candle is still very much red in order to see any form of a bounce.

I’m anticipating another dump through $8,200 down to between $7,150 and $7,400 over the coming days. I will then be monitoring how price action behaves at this key support range to determine the likelihood of a bounce play. RSI has turned completely oversold on the daily chart for the first time in the last few months. This means if you’re looking to re-enter into Bitcoin you should be paying close attention over the coming weeks for an entry signal.

It’s crucial to practice proper risk management such as scaling into and out of the market, using sensible stop losses and not overtrading during times when selling volume is in control of Bitcoins short-term price action. We’ve all seen how brutal the affect of bearish pressure can be within a short time frame.

Do you think Bitcoin will drop to $7,200 before potentially bouncing? Please leave your thoughts in the comments below!

This article is strictly for educational purposes and isn’t to be construed as financial advice.

Images via Shutterstock, XBT/USD charts by Tradingview

The Rundown

Srp 26

BitMEX Owns 0.15% Of Bitcoin Supply As Insurance Fund hits $324M

Cryptocurrency derivatives giant BitMEX now controls 0.15% of all the bitcoins in circulation, new data from the company reveals. 

BitMEX Expands Fund By 50% Since January

Compiled by industry media outlet The Block, a chart of BitMEX’s Insurance Fund shows its stock has reached 31,300 BTC as of August 25.

That figure is the largest on record for the fund, which BitMEX uses to reimburse winning traders on behalf of those who do not have funds to cover losses.

The Fund has become well known due to its rapid increase in size since 2018 in particular. Compared to January 1 this year, its balance has increased by over 50%. 

Twelve months ago, the Fund held just 10,000 BTC, at the time valued at $77.5 million. 

As BitMEX explains in a dedicated blog post, the Fund acts as a safeguard for users who incorrectly guess the trajectory of the market and avoid accruing negative balances on their account. 

The Fund has held a positive balance since March In 2017 when a sudden market crash caused by US regulators’ rejection of the first Bitcoin exchange-traded fund (ETF) saw its entire reserves used up. 

Since then, the company has mushroomed into one of the most formidable exchange platforms in the cryptocurrency world. As Bitcoin grew in 2019, so too did BitMEX’s notoriety for liquidating huge numbers of traders in times of volatility. 

As Bitcoinist reported, its success has attracted the attention of US regulators, who in July revealed they were investigating reports of US traders circumventing security protocols to trade on the platform secretly. 

The impact became obvious for BitMEX, which registered huge capital outflows after the news broke. 

Arthur Hayes, the company’s traditionally vocal CEO, then announced he was retiring until September, allegedly choosing to live in the wilderness and shunning media appearances.

Margin Trading Implicated In Bitcoin Price Spikes

This week, meanwhile, a fresh theory emerged supporting the idea that margin trading like that offered by BitMEX directly induces volatility on Bitcoin markets.

Recent weeks have seen sudden moves of up to $1000 in each direction for Bitcoin, in between periods of almost zero price movement. 

Uploading a combined volume chart, the Twitter trader known as CryptoSqueeze directly attributed the phenomenon to actors like BitMEX.

“The effect of cascading margin calls and stop-loss triggers causing $300 slippage between XBT perpetual swaps on Bitmex vs Spot BTC,” the account noted.

“One word for overleveraged traders: Brutal.”

What do you think about BitMEX’s insurance fund and Bitcoin price impact? Let us know in the comments below!

Images via Shutterstock, Twitter: @cryptoSqueeze

The Rundown

Srp 05

BitMEX Shed $524 Million In ‘Worst Month’ July: Data

Bitcoin derivatives giant BitMEX continues to feel the pressure this week as data shows July delivered its worst performance in history. 

BitMEX $524 Million Lighter In July

As Blockchain intelligence resource Token Analyst reported, BitMEX saw over half a billion dollars leave its platform last month. 

The news came via historical statistics which have since appeared on social media, underscoring the company’s woes in what for others has become a highly-profitable bull market.

“Bitmex had $524M net outflows in July. It had never had more than $100M in a single month,” the Twitter account known as Ceteris Paribus, which reported the Token Analyst findings, summarized Sunday.

By contrast, 2018 saw inflows of $1.3 billion, with inflows beating outflows every month, despite the bearish sentiment which characterized markets at the time. 

BitMEX sees giant volumes during periods of Bitcoin price volatility, with traders even becoming well known for gaining or losing huge amounts in leveraged trades. 

Hayes Juggles CFTC Investigation Fallout

In July, rumors began circulating that US regulators were investigating BitMEX over executives’ alleged failure to prevent US citizens from using its services. 

Due to regulatory issues, US residents are currently shut out from many crypto-based products and services, with authorities concerned not enough is being done to prevent traders circumventing roadblocks. 

The exact nature of the investigation by the Commodity Futures Trading Commission (CFTC) remains unclear, with official sources yet to confirm events. 

Scrutiny appeared to follow criticism of both BitMEX and its CEO Arthur Hayes by Nouriel Roubini, the serial Bitcoin naysayer with whom Hayes had a fierce debate several weeks previously. 

After video evidence of the debate took longer than planned to go public, Roubini hit out at Hayes, questioning the legality of his operations in a dedicated research piece.

“…Despite the overwhelming evidence of rampant fraud and abuse, financial regulators and law-enforcement agencies remain asleep at the wheel,” he claimed.

Hayes meanwhile has since gone quiet, posting only on social media, in which he said he had “traded in a yacht for the jungle” and that he would return to normal duties in September.

The first days of August meanwhile appeared to spell some light relief, with inflows beating outflows after a major cashing out effort by investors at the end of July. 

Other activities also continue, BitMEX investing as part of a funding round for Rain, the Middle East’s first regulated cryptocurrency exchange, in a deal revealed last week.

What do you think about BitMEX’s performance? Let us know in the comments below!

Images via Shutterstock, Twitter: @ceterispar1bus

The Rundown

Čvc 25

Bitcoin Price Analysis: Bulls Win Another Breakout

Bitcoin bulls have won yet another descending channel breakout, causing short-term price action to bounce off a key support around $9,500 and push price levels back to 5 digits. 

Bitcoin Monthly Chart

On the monthly XBT/USD, we can see a doji forming on the latest candle as the head sits in the middle of two large wicks. Typically, a Doji can go in any direction and is heavily dependant on the overall trend of the coin. In this case, BTC is still very much bullish so we are assuming an upside continuation will ensue over this time frame. Volume right now are still sustaining levels way above that seen throughout the bull run in 2017 and 2018.

POC (Point of Control) has yet to move up from $6,430 meaning the highest amount of volume or trades exchanged throughout this bullish phase on BTC still remains quite low. This will be a very bullish sign as it shows us high volume is exchanging hands at this level and represents a new critical support level. More information on this key support level can be found in my previous analysis.

Bitcoin Hourly Chart


On the 1 hour XBT/USD chart, we can see the second descending channel break clearly with price action now attempting to create a small bull flag just below the 200EMA. The volume appears to steady with no real jumps during this breakout. This suggests that Bitcoin bears are really struggling to build up momentum inside this time frame.

Maxx Momentum has crossed to the upside painting green in conjunction with this breakout after displaying red throughout the descending channel. POC still remains back at the top of the channel at $10,500 as mentioned in my previous analysis, which will likely as act as a magnet for price action thus making a sensible profit target on this move upwards.

The previous range local high was $9,400 before BTC went on to reach just shy of $14,000 meaning the previous breakout point has already been re-tested for BTC. When a breakout occurs many traders will wait for a pull-back and re-test of the breakout point before entering. BTC has already re-tested the previous breakout point and bounced quite significantly back up to $11,000. From this, we know that support around $9,400 is very strong and will require a lot of selling pressure to break.

Do you think BTC will hit POC at $10,500 over the coming days as a result of this most recent breakout? Please leave your thoughts in the comments below!

Images via Shutterstock, Tradingview

None of the information/ opinions in this article should be construed as financial advice.

The Rundown

Kvě 14

Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading

Source: bitcoin

Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading

There is a trend emerging in the bitcoin trading landscape. The trend is towards higher and higher leveraged products. If you do not have leverage or zero trade fees at your exchange, then you can expect to see tumbleweed go by every day. Give the users leverage or zero fees, otherwise expect exchange death.

Disclaimer: Bitcoinist does not endorse nor back any of the services in the article. Use them and the information at your own risk.

Also Read: Talking with CRIX founder Dmitry Koval

Stigma – Socialised Losses and high leverage

There is a chance of Socialized losses when trading at some futures platforms with high leverage. When there are a lot of liquidated positions, the system can be at a loss. To prevent the system from losing money everybody that made a profit after the futures have settled pays a part of their profit into the pot to pay for the liquidations. In the past, there were significant socialized losses at okcoin and bitvc. In more recent times since adjusting some of the parameters around liquidations and increasing the insurance fund size socialized losses occur a lot less. Socialized losses were something that a lot of exchanges did not want to be associated with. High leverage futures were thought to be unsafe and not a real derivative. These two factors made some platforms hesitate to make the move to high leverage products.

Crypto Facilities

At the start of 2015 Crypto Facilities offered 3:1 which they later rasied to 5:1. Now have a turbo product with 50:1 leverage. That is quite an increase in leverage wouldn’t you say? At Inside Bitcoins Berlin,Dr. Timo Schlaefer the CEO characterised anything over 3:1 to be “unsafe” and a “gambling product. Oh, how the times change. Compared to a lot of other platforms that offer 20-100:1 leverage. One thing that is different about the products at Crypto Facilities is that there are not any socialised losses. The futures are settled without a possible clawback if there are too many people on the losing side. Even at 100x leverage CF does not have socialised losses. They are also regulated by the FRN. Recently they have made a partnership with CME to create a bitcoin reference rate and real-time index.


Bitmex started out as a futures platform designed for institutional traders. It was confusing and overly complicated for a lot of traders and struggled to get volume. Little by little the UI improved, products were taken away and new ones were added. With the new products and higher leverage came new traders. The latest product is a 100:1 perpetual swap that allows people to trade bitcoin at 100:1 without having to deal with futures settlement. The only one of its kind on the market. Bitmex has also added a perpetual swap at 33.1:1 and has the “regular” futures for bitcoin, litecoin, factom and the A50. Unlike an altcoin exchange, everything at bitmex is based on bitcoin all futures and swaps are denominated in bitcoin. This allows you to get exposure to different markets using bitcoin.

liquidations incoming

Zero Fees
Known for ghash it’s mining pool CEX has been a quiet place in regards to trading as of late. It turns out they have been doing a significant amount of business with people buying bitcoin via credit card and have reportedly had40 Million in deposits and are adding margin trading. They have lowered the fees on all trading pairs and are offering no fees for trading on the pairs ETH/BTC and LTC/BTC. Without fees day trading and trading with a trade bot more viable since you are only paying the spread. Even without fees any exchange will have a tough time getting anywhere near the volume at okcoin.cn. There are no trade fees and the volume is off the chart. Not only is okcoin.cn without fees but they also offer 3:1 leveage. Is the volume at zero fee exchanges real or simple wash trades to pump up the volume? You will have to decide for yourself.

Do you trade bitcoin with leverage? What is your favourite platform?


image credit: tradingview.com ,World History Archive/Newscom, wetalktrade.com

The post Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading appeared first on Bitcoinist.net.

Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading

Úno 16

BitMEX Adds China A50 Bitcoin Futures To Its Offerings

Source: bitcoin

Bitocinist_Futures Contract

Bitcoin traders have been reaping the benefits of arbitrage opportunities for many years now. In fact, there is a growing need for arbitrageurs and market makers, as they are the main providers of liquidity in any financial context. BitMEX, a platform specialized in trading Bitcoin derivatives, has integrated Bitcoin futures contracts with China stocks. This is a major step forward for the legitimacy of Bitcoin as a viable trading tool, both for investing and speculation across other markets.

Also read: Bitcoin Liquidity: Why Are we so Stingy?

China A50 Bitcoin Futures On BitMEX

It goes without saying that Bitcoin and traditional financial trading platforms could prove to be a very potent mix. The popular digital currency providers arbitrage opportunities to anyone in the world with an Internet connection. Traditional finance, on the other hands, is a vastly different creature, as not everyone can start trading futures on the China A50.

But that is no longer an issue, thanks to BitMEX and the Singapore Exchange. Especially this latter party deserves a bit of praise, as they launched a futures contract in USD on the FTSE China A50 Index a few years ago. If this foundation had not been available, BitMEX would not have been able to provide this type of functionality to its users today.

Investors have been jumping at the bit for an opportunity to go long or short on the Chinese market, and Singapore Exchange has provided them with exactly that opportunity. Particularly in these days of market volatility, there is plenty of liquidity to be found where these futures contracts are concerned.

BitMEX decided to jump on this opportunity and put Bitcoin in the mix of China A50 futures contract trading. By copying the contract terms of the same product offered by the Singapore Exchange, BitMEX opened the doors for traders with access to the SGX platform to diversify their trading strategies with Bitcoin. It hardly comes as a surprise to learn many Bitcoin users have been waiting for a hybrid futures contract option such as this one.

One thing to take into account is how the BitMEX China A50 futures contract will be open for trading 24/7. However, market makers will only be able to use the SGX futures price as BitMEX price during trading hours, which range from 00:45 AM to 6:00 PM in the GMT timezone. A detailed table of trading hours can be found here.

But There Is More!

As most market makers will be well aware of, the China A50 futures market is not accessible 24/7. During the “ceased trading” periods on SGX, BitMEX users will be able to choose from other China ETFs to trade with. However, there will be a certain period every day where no product is being traded using the China A50 as an underlying. If all goes to plan, this gap will be filled in the coming years, assuming BitMEX futures contracts become the new leading market indicator by then.

Last but not least, BitMEX has come up with a plan to incentivize traders to provide liquidity on this new futures contract. Passive and makers orders will both be subject to a trading rebate, and makers will earn a 0.10% “commission” on the Bitcoin value of their orders on each individual fill.

What are your thoughts on BitMEX offering futures contracts linked to the China A50? Let us know in the comments below!

Source: BitMEX

Images courtesy of Shutterstock, BitMEX

The post BitMEX Adds China A50 Bitcoin Futures To Its Offerings appeared first on Bitcoinist.net.

BitMEX Adds China A50 Bitcoin Futures To Its Offerings